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Dewan Rakyat passes amendments to Workers' Social Security Act and Employment Insurance System Act

KUALA LUMPUR: The Dewan Rakyat today passed amendments to the Workers' Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).

The Human Resources Ministry said in a statement that both amendments were unanimously passed by a voice vote from all members of parliament in the house.

"The minister, Steven Sim Chee Keong, while presenting the bills for the second reading, said that this increase in the maximum insurability salary amount would improve the protection of benefits under Act 4, such as temporary disability benefits, permanent disability benefits, invalidity pension, and survivors' pension.

"These amendments also include changes to Act 800, which covers job search allowance and early re-employment allowance.

"These amendments also take into account the rising cost of living, inflation rates, and the current poverty line income," it said.

The amendment to the bills will increase the maximum insurability salary amount per employee from RM5,000 to RM6,000 per month.

The ministry stated that the increase in benefit payments is estimated to exceed 20 per cent and will benefit 1.45 million workers and their dependents.

A total of 21 members of parliament from both sides debated the Workers' Social Security (Amendment) Bill 2024, while 17 members of parliament debated the Employment Insurance System (Amendment) Bill 2024.

"MPs who debated both bills expressed their approval of this maximum wage increase and also discussed aspects related to strengthening enforcement against unscrupulous employers and the cost implications for employers.

"Among other points, there is a need for awareness campaigns regarding the importance of Perkeso contributions and establishing a contributor-friendly system.

"Sim also highlighted that this maximum wage increase is one of the government's efforts to strengthen the social protection network and drive labour market reforms in the country," it said.

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